GETS Global plunges 27% after auditor flags risks

KUALA LUMPUR: Shares of GETS Global Bhd plunged 27.59% in early trade Wednesday after the company reported a more than 10% deviation in profit between audited and unaudited results.

The group also announced that its external auditor Messrs PKF has flagged the existence of material uncertainty in its financial statements for the financial period ended June 30, 2018 (FP18) that may cast significant doubt on the group’s ability to continue as a going concern.

The transportation services company fell 27.59%, or four sen to 10.5 sen with 185,000 shares traded.

Gets said there was a deviation of more than 10% between the group’s profit after tax and non-controlling interest as stated in the June 30, 2018 (FQ FPE 2018) announced on Aug 29, 2018 and June 30, 2018 (AFS 2018).

The group said its Messrs PKF had drawn attention to the group's net loss of RM12.25mil in FP18 and that its current liabilities exceeded its current assets by RM20.57mil.

As a result, the auditor also expressed its unmodified opinion on the results for FP18.

Key audit matters raised by PKF include that of its property, plant and equipment balances which amounted to RM71.24 million as at June 30, 2018, of which express buses and city buses represented 31% of the total.

However, the express bus service has reported significant losses during the year of RM9.51 million, therefore indicating that the express buses may be impaired.

Stock on the Move , Gets Global